Sensex recovers gains by 95 pts at 12,979.66

Mumbai, Mar 29 (UNI) After bearish phase yesterday, the 30 scrips of sensitive index of Bombay Stock Exchange today recovered modestly gained by 95.32 points and ended positive at 12,979.66 compared to 12,884.34 on fresh speculative demand from FIIs and mutual funds.

But the benchmark index, which traded lacklustre throughout the day, suddenly found vigour and spurted over 100 points, to briefly cross the psychologically significant 13,000 mark. The Sensex attained an intra-day high of 13,004.40. Much of the spurt may have been on account of short covering in the derivatives segment, since the March 2007 contracts expired today.

The 30-share BSE Sensex settled 95.32 points higher and closed firm at 12,979.66. Its low for the day was at 12,832.69 in intra-day trades.

The BSE CG and SML CAP indices also shot up sharply by 108.51 points and 65.34 points respectively. Both the indices closed high at 9000.14 points for CG index and for SML CAP index at 6377.79 points, followed by CD index by 50.38 and touched at 3535.67 points, IT index by 43.23 and quoted at 4875.08 and PSU index by 36.24 and closed at 5873.38 points.

Meanwhile, S&P CNX Nifty index of NSE also advanced by around 37 points and closed higher at 3798.10 points from it last close of 3761.10 points.Later the index recorded a high at 3805.85 and a low at 3750.35 points in intra day trades.

Volatility was a significant feature with the markets dancing on F&O as well as global cues. The market is expected to trade range-bound for the next of couple of trading sessions. A global trigger may, however, instill some faith in investors. The total turnover on BSE amounted to Rs 3673 crore.

The market-breadth, which reflects the overall health of the market, was strong throughout the day. Buying spread over to small-cap as well as mid-cap stocks. On BSE, against 1,585 scrips advancing, only 924 declined. A total of 80 scrips also remained unchanged. Among the 30-Sensex pack, 23 advanced while the rest declined.

All Asian markets were trading with gains. European markets with the exception of Spain's Madrid General, had also advanced. The Hang Seng Index gained 1.37 per cent, while the Nikkei 225 Index rose 0.05per cent.

The Securities and Exchange Board of India (SEBI) decided to allow short selling by institutional investors only in such stocks which are also traded in the derivatives segment,according to Mr M Damodaran, Chairman, SEBI. At present, there are 159 stocks, whose derivatives are available.

The trend in the global markets has been impacting domestic bourses in the past few weeks. Most Asian markets were in the green today, which may provide support to the domestic bourses. The Sensexs 240-point fall on March 28, was largely due to weakness in global markets. European and Asian stocks had slipped on Wednesday and the yen had risen against higher-yielding currencies as Iran worries prompted investors to ditch risky carry trade' positions based on cheap borrowing in the Japanese currency.

Fresh risk aversion was sparked by tensions over Iran. US crude jumped USD 5 to a six-month high of more than USD 68 a barrel late on Tuesday, on rumours of a military clash between Iran and the US navy. Oil prices relented on Wednesday, after Washington dismissed the talk, but stayed up by nearly USD 1 for the day.

The Dow Jones industrial average closed down 96.93 points, or 0.78 per cent, at 12,300.36. The Standard&Poor's 500 Index closed down 11.38 points, or 0.80 per cent, at 1,417.23.

The Nasdaq Composite Index closed down 20.33, or 0.83 per cent, at 2,417.10 on yesterday, brokers added.

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